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Why Wall Street isn't freaking out about Trump

5 0 1
14.06.2018

Ominous headlines have dominated the news since Donald Trump was elected president. A parade of unprecedented events, ranging from trade wars to mind-bending changes in the western alliances, have many on edge.

But not investors.

Donald Trump has shook up the world since taking office, but Wall Street remains relatively blase.

If there is a single question that I have heard more than any other during the past few months, it is: "How are markets so blasé about the endless threats to financial stability and order from the president?"

Many theories are tossed around. Some resonate more than others. What follows is a short summary of why markets haven't freaked out over the ongoing spectacle of what used to be called market-moving news, but today merely is the state of the world.

I hate this arrogant, frustrating response. Typically, it comes from people who refuse to admit error after predicting disaster from the Trump presidency. It amounts to saying: The market is wrong, I know better and I will be proven right eventually. Any thesis that requires one to wait years to prove or disprove its validity is inherently annoying.

But momentum does sometimes carry things much further than anyone reasonably expects. During the tech bubble in the........

© Canberra Times